Residential sales recorded 75% YoY growth in H12021, says CBRE report
Pune led sales activity with an approximately 26% share, followed by Mumbai (19%).
The first half of 2021 recorded a growth of 75% in sales on a year-on-year (YoY) basis as green shoots of recovery were visible and the momentum is expected to continue over the next couple of quarters. Pune led housing sales in H1 2021 and accounted for an almost 26% share in residential sales across the top seven cities, a report by CBRE has said.
Pune was closely followed by Mumbai (19%). Hyderabad (18%) and Delhi-NCR (17%) were next on the list.
On the back of measured policies announced by the Central, state governments, and the RBI. That apart, owing to the incentives provided by the developers, the residential segment has been showing green shoots of recovery as housing sales grew by 73% on a quarter-on-quarter (QoQ) basis across India’s top seven cities in Q42020, said the report titled Residential Real Estate in India - Challenges And Future-Proofing Strategies For Developers.
Affordability at its highest in over a decade
While property prices have grown at a CAGR of 1-6% across high-end segment and around 2–7% across mid-segment since 2010, the per capita GDP grew at a CAGR of 4.0% between 2010 and 2020, the report said.
The growth in GDP per capita for the top seven cities was above the national average, with Bengaluru reporting the highest CAGR (6.6%). Hence, the income growth overtook the average rise in the price of properties, further contributing to housing affordability, it said.
“With incentives such as the all-time low-interest rates on home loans, extension of moratorium period on loans, coupled with reduction in either circle rate or stamp duty across a number of states, residential has not only shown recovery but has become a great addition to asset portfolios,” said Anshuman Magazine, chairman, India & South-East Asia, Middle East & Africa, CBRE.